Federal Reserve Chairman Jerome Powell indicates that it is not the right time for rate cuts due to lack of progress in achieving inflation goals and increasing inflation data. Larry Fink from Black Rock blames massive spending projects for inflation. Powell is becoming more hawkish on future cuts but is currently holding off, possibly until mid to late summer.
Key Points
Jerome Powell emphasizes lack of progress in inflation goals and increasing inflation data
Larry Fink blames massive spending projects for inflationary pressure
Powell hints at possible rate cuts in mid to late summer
Pros
Powell's cautious approach may prevent premature rate cuts
Focus on achieving inflation goals is important for economic stability
Cons
Delay in rate cuts may impact economic growth if inflation persists
Political pressures may influence Fed's decision-making process